Small Hydropower Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The small hydropower market size has grown steadily in recent years. It will grow from $3.04 billion in 2024 to $3.14 billion in 2025 at a compound annual growth rate (CAGR) of 3.2%. The growth in the historic period can be attributed to large supply of water resources, rural electrification, environmental concerns, versatility and low investment costs, financial incentives.

The small hydropower market size is expected to see steady growth in the next few years. It will grow to $3.47 billion in 2029 at a compound annual growth rate (CAGR) of 2.5%. The growth in the forecast period can be attributed to increasing demand for clean energy, increase in greenhouse gas emissions, increase in the production of energy from, increasing installation of small hydropower plants, increase industrialization.Major trends in the forecast period include integration of iot with hydropower, adoption of digital technologies, technological advancements, geographical expansion.

The small hydropower market is expected to experience growth due to the increasing demand for clean energy. Clean energy sources aim to minimize negative environmental impacts, particularly in terms of greenhouse gas emissions and air pollution. Small hydropower systems contribute to clean energy generation by producing electricity without emitting greenhouse gases or air pollutants during operation. The International Energy Agency reported in May 2022 that global renewable capacity is projected to increase by 8%, from 295 gigawatts in 2021 to 320 gigawatts in 2022, reflecting the growing emphasis on clean energy sources. This rising demand for clean energy is a key driver propelling the small hydropower market.

Major companies in the small hydropower market are actively engaged in developing innovative products to strengthen their market position. One such innovation is the introduction of mini hydropower systems, which are small-scale hydropower setups generating electricity from flowing water with a capacity typically ranging from 100 kW to 1 MW. In March 2022, Ricoh Company Ltd., a Japanese provider of imaging and electronic systems, launched a 3D-Pico Hydro Generation System. This system utilizes 3D-printed sustainable materials and can be integrated with solar panels and batteries for a more stable power supply. The 3D-printed components are made from recycled plastics, enhancing the system's sustainability. Additionally, the system can be combined with solar panels and batteries to create a hybrid power system.

In March 2022, Aker Solutions ASA, a Norway-based engineering company, acquired Rainpower Holding AS for an undisclosed amount. This acquisition is part of Aker Solutions' strategy to enhance its renewable energy portfolio by incorporating Rainpower, a leading provider of hydropower technology. By acquiring Rainpower, Aker Solutions aims to leverage synergies that will optimize the development and operation of hydropower projects, while also offering comprehensive digital electro-mechanical solutions in the renewable energy sector. Rainpower Holding AS specializes in the small hydropower industry, positioning Aker Solutions to strengthen its capabilities in this growing market.

Major companies operating in the small hydropower market report are General Electric, Siemens Energy, Toshiba Corporation, ANDRITZ, SNC Lavalin Group, Voith GmbH & Co. KGaA, Mavel, a.s., Flowserve Corporation, BHEL, Kolektor Turboinstitut, FLOVEL Energy Private Limited, Mannvit Engineering, VAPTECH, Canyon Hydro, Ganz EEM, ATB Riva Calzoni, Natel Energy, Inc., Canadian Hydro Components, Hitachi Mitsubishi Hydro, B Fouress, HydroCoil Power, Hydro Green Energy, Rentec Renewable Energy Technologies, Gilkes Hydro.

Asia Pacific was the largest region in the small hydropower market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the small hydropower market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the small hydropower market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The small hydropower market includes revenues earned by entities by providing services such as clean electricity generation, rural electrification, engineering and design, monitoring and optimization and installation and project management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The small hydropower market also includes sales of turbines, generators, penstocks, weirs, and control systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Small hydropower refers to the generation of electricity using hydropower systems with a capacity typically less than 10 megawatts (MW). These systems utilize the energy from flowing or falling water to generate electricity on a smaller scale compared to larger hydropower plants.

Small hydropower encompasses micro hydropower, mini hydropower (with a capacity of up to 1 MW), and small hydropower (1-10 MW). Microhydropower, specifically, is a hydroelectric power category generating 5 kW to 100 kW of electricity by harnessing the natural flow of water. Business applications for small hydropower include deployment in civil construction, power infrastructure, and various commercial and utility-scale projects.

The small hydropower market research report is one of a series of new reports that provides small hydropower market statistics, including small hydropower global market size, regional shares, competitors with a small hydropower market share, detailed small hydropower market segments, market trends and opportunities, and any further data you may need to thrive in the small hydropower industry. This small hydropower market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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